Chapter 7: Buying Behavior- Chapter 7: Buying Behavioro Buying Behavior The decision processes and actions of people involved in buying and using products. Involved with buying and using the product. Buying a pencil to use at home vs using it in the office.o Consumer Buying Behavior The decision processes and purchasing activities of people who purchase product for personal or household use and not for business purposes, Not all decisions processed lead to purchases. Not all consumer decisions have all 5 steps.- Involvemento Definition How important is this product. degree of interest in or importance of a product o Enduring Involvement Ongoing and long-term involvement with a product or product category. Keep looking into what you are going to buy. Keep a marketing mix that will satisfy customers.- Example: This may be someone who stays connected with technology, read the latest magazines, and work in a related field.o Situational Involvement Temporary, or dynamic involvement resulting from a particular set of circumstances. You buy what you want without thinking about it too much.- Levels of Product Involvemento High-Involvement Products Visible to others, expensive, high social risk.- Customer may have always had the most advance technology, read the latest electronic magazines, and working a related field.o Low-Involvement Products Less visible, less expensive, less social risk.- Need to buy a new car after getting in an accident. They may be really involved with the process at the beginning. But then become uninvolvedby the end of the process.o Will lead to consumer decision making.- Consumer Problem Solving Strategyoo Routinized response behavior: A consumer decision making process used when buying frequently purchased, low-cost items that require very little search-and-decision effort.  Example: run out and go buy more. Do it out of habit.o Limited decision making: A consumer decision-making process used when purchasing products occasionally or needing information about an unfamiliar brand in a familiar product category. Requires time for information gathering and deliberation Limited Problem Solving- Examine groceries and use food labels.- Buying new type of detergent.o Extended Decision Making: A consumer decision-making process employed when purchasing unfamiliar, expensive, or infrequently brought products Uses criteria and information on deciding new products.o Impulse Buying: Just buy it without giving it any thought. Most consumers occasionally make purchases solely on impulses and not on anybasis of any of these decision-making processes.- Consumer Decision Makingo- Consumer Buying Decision Process and Possible Influences On The Processo- Problem Recognition Stageo Occurs when a buyer becomes aware of a difference between a desired state and an actual condition. Example: When a girl has an old calculator and needs a newer version to run software.o Recognition of problem may be sped up by advertising, packaging, ECT. Example: Calculator advertising may let students know they need a new one through advertising in a book store.- Information Search Stageoo Internal search of what we know. An information search in which buyers search their memories for information about products that might solve their problem.o External Search: An information search in which buyers seek information from sources other than their memories.o Customers may overestimate friends’ opinions for products.o Repetition increases consumers’ learning of information. When they see it the first time, they may not think about it, but they alert more as the message is repeated.o This may eventually cause wear-out.- Evaluation of Alternativeso Consideration Set (ice cream) A group of brands viewed as alternatives for possible purchase. Look at different brand of ice cream.o Evaluative Criteria Objective and subjective product characteristics that are important to the buyer. May want a creamier ice cream instead.o Framing: describing the alternatives and their attributes in a certain manner.  Influences inexperienced buyers more than experienced. If evaluation yields more than one brand, the consumer can move to the next stage of the process, the purchase.o Other issues such as delivery, price, warranties, maintenance agreements, installation, and credit arrangements are also settled.- Purchase Stage and Post-purchase Evaluationo PURCHASE Chooses product/brand  Chooses the seller Negotiate the terms Purchase or terminate the process.o POST-PURCHASE Cognitive Dissonance- A buyer’s doubts shortly after a purchase about whether the decision was the right one.- More likely to arise when a person brought an expensive, high-involvement product that lacks some of the desirable features of competing brands.- Person may attempt to return the product or seek positive information about it to justify choosing it. Reduce cognitive dissonance by having salespersons making sure customers are satisfied with their new purchases.- The Case for Collaborative Consumptiono The reinvention of old market behaviors - renting, lending, swapping, bartering, gifting - through technology, taking place on a scale and in ways never possible before. - On Collaboration Consumptiono http://www.ted.com/talks/rachel_botsman_the_case_for_collaborative_consumption.htmlo Time Magazine’s top 10 Ideas that will change the worldo What are the 4 drivers of collaborative consumption?o What are the 3 types of systems?o Where is collaborative consumption today? More examples?  http://www.collaborativeconsumption.com/2014/01/16/collaborative-consumption-a-trend-to-watch-for-in-2014 /o Drives of Collaborative Consumption A renewed belief in the importance of a community. A torrent of peer-to-peer social networks and real-time technologies. Pressing unresolved environmental concerns. A global recession that has fundamentally shocked consumer behaviors.- Consumer Buying Decision Process and Possible Influence on The Processo- Influencers of the Buying Decision Processoo Situational Influences: Because physical surroundings are situational influences, retailers spend considerable resources on store interiors, and sometimes exteriors, to make the customer’s experience more favorable. Physical Surroundings- Include atmosphere, aromas, sounds, lighting, weather, and other factors in which decision process occurs.- Make